Atlantic Canada Eyes a Future Beneath the Seafloor

New federal research maps Atlantic Canada’s underground potential for long-term carbon storage and future CCUS development

11 Feb 2026

Atlantic Canada is emerging as a new focus in the country’s carbon capture strategy, as scientists begin assessing whether its underground rock formations can store carbon dioxide safely for decades.

A federally supported project led by Memorial University, with backing from Natural Resources Canada, is mapping subsurface geology in Newfoundland and Labrador and nearby areas. The aim is to determine whether the region has the right conditions to contain captured emissions on a permanent basis.

Carbon capture and storage relies on injecting carbon dioxide deep underground into porous rock formations. These must be sealed by impermeable layers, known as caprock, to prevent leakage. Without that geological pairing, long-term storage is not considered viable.

Western Canada has so far led national efforts in this field. Decades of oil and gas exploration have produced extensive seismic surveys and well data, giving provinces such as Alberta a detailed understanding of their subsurface resources.

Atlantic Canada, by contrast, has less historical data. Researchers involved in the new initiative are reviewing seismic records, well logs and the structure of layered rock formations to close that gap. The findings are expected to inform policymakers and investors considering future carbon management infrastructure.

Natural Resources Canada has said that reliable subsurface data is essential for any large-scale carbon capture strategy. Without confirmed storage capacity, investment in capture facilities and transport networks carries significant risk.

At present, the work is limited to research and regulatory preparation. No commercial carbon storage hubs are operating in Atlantic Canada. If suitable formations are identified, later phases could involve detailed site testing, environmental assessments and applications for permits. Shared storage facilities serving multiple industries could follow.

Several challenges remain, including offshore regulatory frameworks, long-term monitoring requirements and community engagement. Environmental approvals are likely to be closely scrutinised.

As global demand for carbon management solutions increases, regions with verified storage capacity may gain strategic importance. The outcome of the geological assessments will determine whether Atlantic Canada can play a larger role in the country’s transition to a lower-carbon economy.